The company that makes Gibson guitars and Baldwin pianos filed for Chapter 11 bankruptcy protection early Tuesday amid what it called a "devastating" financial fall.
Nashville, Tenn.-based Gibson Brands requested court protection from its creditors, saying it had support from many of them for a deal that would allow the company to survive.
Founded in 1894, the company said it planned to continue designing, building and selling musical instruments and equipment, including other brands such as Wurlitzer, Dobro, Epiphone, KRK and Cerwin Vega.
But the company said it would kill its Gibson Innovations unit, which makes Philips-branded headphones, speakers and other electronic accessories.
Known for providing instruments to stars such as Elvis Presley, BB King, Keith Richards, Pete Townsend and Lenny Kravitz, Gibson sells more than 170,000 guitars annually in more than 80 countries, according to a court filing. The company claims market share of more than 40 percent in electric guitars above $2,000.